tv Closing Bell CNBC November 27, 2019 3:00pm-5:00pm EST
years ago. >> it was two years ago. that's when the run was. >> people would come to me and say what should i do about bitcoin? >> i wonder what the topic will be this year if there is one like this. >> happy thanksgiving to you as well. >> happy thanksgiving to you. >> "closing bell" starts right now. >> welcome to "closing bell. i'm morgan brennan in for sara eisen. shares of deere on that weak outlook and u.s./china trade war. we've got 59 minutes, though, left until what's looking like another record close for the major averages on this thanksgiving eve. >> good afternoon, everyone. i'm wilfred frost. let's look at what's driving the action today strong economic data another positive signal from business and the consumer. stop me if you've heard this
before but investors remain bullish. we are on record close watch for the three major averages, as we stand, the nasdaq and s&p pretty comfortable. the dow just higher, though, by only 0.1%. industrials the only sector in the red. consumer discretion. joining us, josh brown from wealth management. >> well done. >> what did i say? >> i'm not sure. it was cute. >> i got close enough. >> let's stay on track nasdaq, dow, s&p. >> with almost nothing in the red at all. >> it's bigger than that 52-week highs for the slf. bank sector. very, very key incredibly bullish consumer sector spydr. look at the usual suspects, xlk. off the radar things that are
happening that's really interesting. this might be because enough tax law selling has already occurred or traders are anticipating the end of that. some of those high-profile ipos that blew up this summer and fall are starting to make meaningful moves off their lows, looking like they could be putting in a sustainable bottom. peloton, after a very disappointing debut. slack looks good it's a name i've owned it's looked terrible for a long time nice move off that low buyers are coming in here. 20 is a tradeable bottom moving forward. uber made a nice move. that's an interesting tail wind that started to develop. some of the hardest hit, biggest damaged laden names are looking better and better. there's a lot to like. if you've been watching me every week on shoet for weeks and weeks, months and months, the technicals are keeping along this market. today is another case in point. >> lot of names for investors to
chew on. an entire hour with josh we'll get all over today's big economic news as well. diana olick, steve liesman is looking at divergence of the u.s. and chinese economies new reporting on concerns from corporate executives and joining us to break it all down, from morgan stanley investment let's start with diana and the beige book. >> modern economic expansion, tight labor market and, of course, trade impacts. manufacturing was improved overall. mentoring trade policy as a downside risk to their outlook worker shortage spans most industries and skill levels. one provider of business security in seattle said their labor costs were the highest in the company's history. in chicago, several companies reported hiring retired workers to fill their gaps prices rose modestly overall much higher costs due to
tariffs. sales expectations for the holiday season in the boston district, very strong. one retailer reported import duties on some european luxury goods were way up. back to you. >> diana, thank you very much for that meantime, there were some positive signals on the data front today in the u.s., but different case in china of late. steve liesman has been looking into that for us. >> most of the data today in the u.s., a bit better than expected, compared with some pretty bad chinese economic data take a look here for example, we had the gdp come in two ticks better, durable goods. looking for a 1% decline, up 0.6, 50-year low that's been around for a bit industrial profits in china, down nearly 10%. six straight month of decline, exports falling for 17 straight months taking its hits from the trade war. pmi versus pmi, the u.s. has
fallen sharply from robust days of 60s, somewhere in the middle of 2018 and now both countries pmi's are in negative territory. rather than look at the winner of the trade war, maybe it's who's losing more? one other way to look at it, u.s. exports to china and chinese imports to the u.s., there you go, down 15.5% imports from china down 13.5%. we're doing a little worse there. not in terms of dollars. take a look at the other side of this, the dollar terms -- 53 billion year-to-date off on chinese imports to the u.s., just 15 billion. we export less to china. losses on both sides might have been brought up a little closer. we'll see if the losses are big enough, though, to forge a deal. wilf morgan >> steve, question for you we know there was a slowdown starting to happen, at least in some parts of the economy in china even before all the trade stuff happened how does the data now compare to
them >> i think it accelerated to the downside then it affected pockets in the u.s. the difference in the u.s., morgan, as you know, we have this very dynamic economy. some people importing, some people exporting, companies that benefit from a strong dollar and some from a weak dollar. it's the dynamism of the economy that tides us over so there are some downsides to the economy, just not as dramatic as they are in china. >> under the radar but possibly interesting data about the fact that that china was able to pull off its largest ever international bond sale this week they were expecting $3 billion they did $6 billion. they had $20 billion worth of demand for dollar denominated bonds in china i think it dovetails with people
looking at the stock market for a proxy of whether or not the world is really worried about this trade war wearing on. are those related? >> should i call you brown, you call me liesman? >> no, no, i'm mr. brown. >> mr. brown, okay china's business to the u.s. is right now. u.s. business to china is essentially on the come. nothing has eliminated the chinese burgeoning middle class. they'll still come to market wall street is still going to fund them. there's pretty good optimism about down the road where nothing about it has revealed those facts. brown. >> steve, thank you very much. on that point, quickly, josh, only at 65 basis points above treasuries when we know rates are pretty low by historic standards.
>> risk-free bond to your point. >> chinese will be look at this and saying if we can slowly but surely take advantage of the current circumstances and offset our current use of reserves, i think it's a huge factor for them long term playing it small relative to their overall deficits. >> very good point if you're just reading headlines, all the furor, all the uncertainty. next week china is going to have four times the amount of subscription for a bond offering, the biggest they've ever done, and it will be 40, 50 basis points over a treasury, you would say absolutely not yet that shows how much more important price and reality are than saber rattling by politicians. >> it changes one factor with china we've had and that is whether or not they can keep the currency propped up and fixed where it is. this helps them do that. >> no question. >> despite those positive data
points at home and stocks at record highs here, some executives are raising red flags about next year's outlook. what is jp morgan saying about the sentiment coming from ceos right now? >> i sat down with john richard. in contrast to the euphoria, the bullishness we're talking about at cnbc, ceos have a lot of pessimism for last year. with the election coming up, they think with the expansion in the late innings, they think with potential democratic candidate who might want structural texts and regulatory changes to the u.s. that they are actually pessimistic about growth in 2020. >> what about the sort of underlying differences, hugh, different sectors, industrial versus consumer. >> it's a tail of two industries worlds really. anything to do with services and tech, these are things, anything to do where it's driven by the
consumer these are corporations and sectors that are still doing well if you talk to ceos of old economy manufacturing, transportation, business services in some cases, these are people who might tell you they are currently in a recession. >> hugh, thank you very much for joining us hugh son catch the full story be sure to check that out. we're in the first innings of a capitulation trade morgan stanley investment management andrew, thank you so much for joining us you've been looking at recent decades type performance and you think this looks more like 2012 and 2016 at the moment >> 2019 does but what happens in 2020, i think, will mimic what happened in 2013 and 2017, which were that simply 2012 and 2016 came
after very tough years we had economic scares the market rallies because there was no recession in those years, but investors actually liquidated out of equities, 2012, 2016 because they remembered the pain of the big drawdowns of '11, '15. that's exactly what happened this year. we had a big drawdown last year. market is up a lot but investors liquidated look back to 2013, 2017, what happened was the money that was liquidated the first year coming out of that tough year reversed, investors came back into the market so inflows -- flows turned positive at the end of 2012. at the end of 2016, we had very positive inflows in 2013 and 2017 and you had very good -- another good year for equities in those two years we've had outflows net from
equity, etfs every month this year and we're just starting to see those flows turn positive. i think you cannot say -- anyone that says to me, look, i think this run is almost over, you're telling me that after 10 months of outflows we're going to have a month and a half of inflows? i think that's crazy. >> yeah. josh, do you agree does this bull market have more? >> i'm curious the chief strategist at your firm has been talking about a recession pretty much on a weekly basis all year. do you think that some of those outflows are being driven by commentary like that and then when the recession does not materialize and things continue on an even keel and we're still at essentially gdp 2% growth quarter after quarter, maybe not each quarter but on average, people say i don't believe the recession call i'm going to invest for the long term and ignore that stuff
is some element to the data turning upward >> i've been on cnbc, you know, since this summer, saying we're having a recession scare it's going to be a repeat of 2011, 2015 value stocks get very cheap. and then there's no recession and value comes back as evidenced today. you told me financials are at an all-time high. they continue to move higher. >> 52-week high. >> then that will return the investor behavior more positive. and that is what has not happened yet it's just starting, and people will come back in the market the other thing that is very relevant is if you looked at the positioning this summer, the defensive sectors were extraordinarily expensive relative to the market and that just tells you, people are positioned for the market to go down, not up. and in the past when they've gotten this expensive, the
market actually always goes -- has always gone up and that the defensive positioning has to be unwound. it goes in value stocks, gross stocks, comes out of utilities, reads, consumer staples. i think that's exactly what we're seeing again so the key thing is, the macro conditions change, but investor behaviors do not change. and i think this next year coming up will be a repeat of 2013 and '17. >> yeah. >> andrew, thank you so much for joining us good to see you. >> thank you happy thanksgiving. >> and to you. very happy thanksgiving. after the break on closing bell, investors have a lot to be thankful for and mike santoli will head to the telestrator for the key factors that led to the rally. nasdaq and 2019 ipo race a new proposal could open the door for more direct listings at the big board.
43 minutes left to go. shares of box jumping as well, after reporting better than expected revenue, raising its four-year forecast, as you can see that stock almost up 10% dell technologies falling after posting an earnings beat and revenue miss, also cutting its full-year revenue forecast, citing shortage of chips from supplier intel. >> let's get over to mike for today's market dashboard. >> hi, wilf. good to talk to you i want to allow people to take in the dashboard here idea autumnal shade of orange. graphics folks did a great job on this. i'll go through what we're going to run through loosening the belt, kind of a sign of how the bond market has helped the market get to where we are right now generational frictions, different classes of tech
stocks, very different experiences, well-balanced menu, asset allocation has worked very well this year kind of quantify that. homes for the holidays little bit about housing loosening the belt up 26% year to date on the s&p 500. up 17.5%, fourth quarter decline last year. how did we get here? to what do we owe this bounty? multiple expansion 14 times forward multiple on the s&p a year ago, you said we're going to add almost 4 points to that, i don't think a lot of people were really in that camp and would be able to ride out a flat earnings year look what happened to the ten-year treasury yield, going exactly the other way. the fed is out of the way of the markets. we have a very benign information where very low yields but not really looking at a recession right away is really buoying pe multiples here is the trick, is it foretelling we're getting a return to earnings growth next
year that's the prem iises to allow this to go up and this down. that's a prime example of exactly how we got here in a flat earnings year, guys. >> i should stop by saying it's good to talk to you all well. >> i haven't seen you all day. >> i know, just from afar. the interesting thing on this chart, if you did this with europe over the same period, you would see a similar move in rates lower but would actually see e multiples track lower as well, which is kind of a fascinating different example where qe hasn't really worked and you could argue that's because the bond market isn't as well developed it has worked essentially here is what that argument is showing. >> right these low yields have created tr tremendous corporate accreditation. bank stocks have started to perform over here but the financials and oil stocks, it's
not necessarily apples to apples this is pretty much a growth index right here, one reason it's been able to support these evaluations. >> i get it, mike. you put the whole situation in orange you give us these easy to understand themes here clearly, we're talking about thanksgiving. >> you're welcome. yeah. >> i appreciate it. >> you should be thankful. >> he has had some obscure ones lately it's been a little tricky. >> in that chart that mike is showing, like you're seeing bonds and stocks work this year together goldman sachs pointed out yesterday this is the best year for 60% stock, 40% income portfolio since 1998 in 21 years, you haven't done this well in a diversified portfolio. be thankful. >> josh gave you a preview of our third dashboard. >> my bad. >> unless you've held stocks like slack. >> that shouldn't be 60. >> no. >> that should be this big within the 60.
>> all right. >> mike, thank you very much we'll see you later. after the break, shares of underarmor are down in the last six months but one investor says it's an underrated underdog. why, next. and apple doubles down on hos.wireless headpne if you're hoping to get them by christmas, you may be out of luck those details coming up in the market zone. dana-farber cancer institute discovered the pd-l1 pathway. pd-l1. they changed how the world fights cancer. blocking the pd-l1 protein, lets the immune system attack, attack, attack cancer. pd-l1 transformed, revolutionized, immunotherapy. pd-l1 saved my life. saved my life. saved my life. what we do here at dana-faber, changes lives everywhere. everywhere. everywhere. everywhere. everywhere.
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dick sportings goods posting several strong delivering a premium brand experience for its partners, mainly up 50% for the year and double digit growth for online sales next, raymond james believes in one of dick's partner brands calling underarmor underrated. trading at a discount relative to. >> netflix is facing rising competition from the likes of disney and apple jp morgan says this will be good for the company, accelerating the shift away from tv
nicole sperling from "the new york times." bernie, is that the way they should be framing this, shift away from linear tv versus these streaming services >> right now there's about $100 billion spent annually on the paid tv ecosystem versus 15 billion for the marketplace. net fliks is the lions share of th that it will benefit all players. a buy rating on disney because of that, going from zero to 10 million. >> did you welcome when a company like netflix spends more on a movie versus more on tv episodes which kind of attracts subscribers better >> marking a change in strategy for netflix historically budgets for movies has been much
smaller. the oscar nominee last year had a $15, $20 billion irishman is $160 million, underground 6, massive budget. and next year a $200 million budget massive budgets that the company is spending. historically, movies have been a major driver of subscribers. 23 million households watched "murder mystery. that was also in q2 when subscriber decline. >> what's on the line with the release of "irishman"? they've been applying a lot of money and marketing into this film's release, whether you think about them taking over little italy here in new york city and throwing it back to -- throwback to the 1970s or movie theater releases in two very iconic well-known theaters, with one on each of the coasts. >> yes the irishman is a big deal for netflix this fall, both from a
subscriber acquisition standpoi standpoint they had "roma" and spent tremendously marketing that film they did well at the oscars. they were nominated in best picture for the first time, and had a good run alfonso corone won for best director best picture prize is what their eye is on. they want to prove they're a home for filmmakers and that's why they're sxabd expanding into the theatrical space more so than ever before, to the chagrin of many theaters who will not play by netflix's rules. >> how does netflix gauge success for a movie like this? it's not box office sales, right? is it the amount of subscribers that stay glued and watch the movie? >> well, they do not share box office results so we do not believe that box office is important to them.
yes, subscriber acquisition is what they're all about with this added competition from disney plus and hbo max coming down the line and peacock after that, there will be additional competition not to mention all the out of home theatrical movies out there, plus all the other content that's available to be streamed. >> josh, is netflix still a momentum and subscriber number stock or is it going to transition in the near future to being the multiple stock >> i think it's largely being druven by whether or not they can keep the u.s. audience, keep not just subscribers coming in, but the engagement, but then also the international has been the bigger driver. and i guess my question would be understanding that the movies have not driven new subscribers, but do the movies hold people longer do they keep people's attention more do they maybe prevent people from canceling because of these types of events where you say i really don't want to leave
netflix and go to disney, i want to keep both, because i don't want to miss things like the irishman when they happen even if they're only once or twice a year what are your thoughts on that >> certainly we haven't seen that yet, keeping subscribers in the platform necessarily with disney plus, they're releasing it, we'll have an episode every friday till the end of the year. >> it's episodic. >> exactly. >> baby yoda craze that seems to be taking on new -- >> you can't go through instagram without seeing a meme. >> thank you for joining us, bernie mcturnin and nicole sperling we have less than half an hour to go here are the three things driving the action right now slue of strong data, as u.s. economic growth rises by 2%. other positive signals from business and the consumer. stop me if you heard this before investors are being bullished.
>> stop. >> on news of a trade. we're on record close watch again for the s&p, nasdaq and dow. >> it is time for a cnbc update with sue herera. hello, sue. >> hi, wilf. hello, everyone. canadian trade officials say they are encouraged when it comes to where the conversations are of the usmca, formerly known as nafta a vigil was held in vietnam to honor the victims of a human trafficking incident last month 39 bodies were found in the back of a truck in england, the alleged driver of that truck has pleaded guilty to charges, including assisting an illegal immigration. >> a lawsuit filed on behalf of charlottesville, virginia, community members against hate groups is headed to trial. stemming from violence at unite the right rally in 2015.
that trial will begin in october 2020. as millions hit the skies for thanksgiving, new study unveiling the airlines with the healthiest menu options, alaska airlines and air canada tying for the top spot i'll send it back downtown to you. >> interesting i want to know more details. >> are you one of those people who eats on the plane? >> i love a plane meal. >> wow, okay. >> they take into account the number of calories per item and the amount of sodium and how many fresh offerings in other words, do they offer you the choice of an apple or fresh fruit, or nuts with your meal. >> there you go. >> the move is to bring something on the plane from the airport. >> unacceptable if someone does that with shake shack and pizza. >> the smell, i know. >> like a sandwich
yeah, yeah not cooked food. >> easier to do in heathrow than jfk where the options are terrible. >> thanks. see you again next hour. with 27 minutes left of the session, set for record closes once again the dow is higher one-tenth of 1% coming up, your last chance trade and josh is hoping a small play leads to a big payoff. >> later, before this was beyond meat, before impossible foods ever hit shelves, there was tofurkey the iconic turkey alternative about the crowded fake meat market the ten-year currently yielding 1.67%. closing bell will be right back. he's finally here!
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of the session let's get over to mike for the second installment of the market dashboard. good to speak to you. >> you as well, as always. they're in place here in the stock market, too, with regard to old versus new tech this is not really a new story look at the chart here over the last year or so of a handful of old versus new i'm going to put microsoft in new. i'll talk about that in a second microsoft, nvidia and facebook up over the last year. dell has underperformed and is having a hard time today hp and cisco they're all older and wedded to older infrastructure on average, these three traded ten times, on average these three traded at 30 times earnings we're clearly in a market that wants the new thing, the disruption they've become new generation tech it's kind of a cloud business
all together as well as a bit of social exposure there, too the market can be persuaded. you can can have a fountain of youth moment but it's hard to get out of that old tech label. >> does microsoft suggest that cisco or whoever else could suddenly get that multiple again if only they could deliver a couple more quarters of growth or is there something more to it >> i'm going to say no to suddenly, because it took microsoft a decade to kind of reorient itself and pull away. i don't know that it's necessarily possible it's definitely a long shot, if nothing else just given where our core businesses seem to be. dell is trying to transform. >> key point tech is leading the charge but it depends what type of tech you're talking about. >> absolutely. >> still to come, your last chance trade josh is taking a close look at small caps. >> plus, we're getting into the holiday spirit coming up, we'll dive into the areas of the market that tend to
do well between thanksgiving and new year's we've got the seasonality trade. that's comg inup you should be mad that this is your daily commute. you should be mad at people who forget they're in public. and you should be mad at simple things that are unnecessarily complicated. but you're not mad, because you're trading with e*trade, which isn't complicated. their app makes trading quick and simple so you can strike when the time is right. don't get mad, get e*trade and start trading today. by the way, she's the it wasnext mozart.g day. as usual we were behind schedule. but sophie's enthusiasm cannot be dampened.
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josh, what is your last chance trade? >> i want to talk about small caps for the sake of time, we'll use the iwm, the most popular etf you can use to get exposure to small cap index, mimics the russell 2000 this is one of the areas of the market that people would point to and say you see, the breakout is not real. a new 52-week high we looked at the data, with small caps, once they do break into a 52-year high. it's not encouraging you're 10, 12 months out to get a much higher return than average. with small caps it's lower so one distinction you want to make, and my friend ryan deitrich has done this when the russell has take n
longer it's taken 15 months for the russell to break out it's positive. you want to see this kick in but just remember, it's not quite as momentum driven as the s&p 500, large caps. there is more volatility here. if you're taking this as a trade, you should stop. >> 5% from its all-time high which came -- >> 2018. >> what do you make of the fact that it hasn't caught up >> what happens to do with the russell has to do with the financial service sector banks are the highest weights in here and, of course, they don't have the best stocks in the world microsoft, apple these stocks have driven both the nasdaq and s&p all year this year it takes a lot more to move it that being said, historically, back to 1978, it has
outperformed, it has done very, very well. it tends to be streaky it is not the same thing as an s&p breakout but notable nonetheless. >> we have got 16 minutes left the session. we are higher by 31 points, half a percent for the s&p. nasdaq, the last commercial break we're going to take before the close. when we come back, we'll go inside the market zone servicenow put our workflows in the cloud. this changes everything. you're right sir... everything. no not everything, i mean you're still blatantly sucking up to me gary. brilliantly observed, sir. always three steps ahead. six steps ahead. sixteen. so many steps. you done? a million steps ahead.
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less than 13 minutes left in the trading day. we are on record close watch we are now in the closing bell market zone. commercial-free coverage on all the action going into that close. >> cnbc market's commentator mike santoli here to break down the crucial moments of the trading day and josh brown from ritz holtz wealth management did i get it right there that time >> you're killing it, wilf. >> great doubling orders for air pods pro to at least 2 million per month. to date, luke ventures estimates apple has now sold 76 million of these wireless ear buds. the new $249 air pods pro appear to be a holiday hit. fans who order from the online
apple store won't receive the product until december 30th at the earliest, though they are shipping to apple stores and other retailers. amazon is selling them for $235. tim cook told cnbc he was manufacturing the most airpods he could, but there could be a supply issue obviously cook wants consumers to have the products they're looking for. still in the scheme of things, cook told us, that's a good problem for apple to have. guys, back to you. >> josh, we know that services carries the highest margin, of course, versus hardware. do we know roughly what the margin is for this part of the hardware portion of what they sell versus an iphone or other wearables? >> i don't think it's the margins so much, wilf, that investors are focused on i think the bigger story and why investors care about this, listen, is because analysts, by some of their math, if services and wearables can keep growing at the rate they do, then they think that apple can keep seeing
accelerating growth, even if iphones remain flattish. i think that's why there's a lot of focus on that division. >> mike, josh, thank you mike, good problem to have or is this just one more thing where in a year shares of apple have absolutely sky rocketed? >> i think it's a grood problem to have, but it's also news that's hitting a market that's not overthinking it and is willing to believe and buy the big name, obvious stocks you've driven apple to above a 20 times pe on a forward basis remember how it used to be cheap forever? obviously they've revalued it higher this is another thing people can put on the list. you used to denegrade apple and say it's just a gadget company now they can't make enough of their gadgets. beating earnings estimates, fiscal 2020 profits in the
agriculture space, deere forecasting sales to decline 5 to 10%, not just farm machinery where they're forecasting that either reflecting slower activity there. also financial services weakness john deere capital came under pressure due to operating lease losses down 15% from 2019 to 2020 financing sales as well, whether this is, josh, just dea deere-specific situation or can it play out with caterpillar >> if i explain to you the impact of the trade war and say think of the stock most affected, you would say deere. it wouldn't even be hard for you to arrive at that answer. >> so it bounces back when the phase one is done? >> potentially it's not had a bad year, by the
way. >> it's not just trade either, though you've had terrible weather here in the middle of the country the farmers, the farming community has gotten it from all sides as well. trade war is a big piece of it but not the only thing. >> farm incomes have been depressed five, six years in a row, first time you've seen that outside of the 1970s due to inflation. good economy, which does not help agriculture, then this whole mess with china not buying as much. subsidies, but the farmers aren't using that to buy equipment. they're using that to, like, put food on the table. it's mazing that deere is where it is, probably because the stock market has been so good. if you had to guess who is going to get hard, it's obviously firsthand farm equipment sales and the dealers have tons of inventory. it's not a good situation. >> because if deere is declining, industrials are the only sector on the s&p down two-tenths of 1%
seven minutes left the trade. phil lebeau is at chicago airport with more on boeing. hi, phil. >> reporter: another example of the faa making it clear it will be much more diligent when it comes to recertifying the 737 max. it sent a letter to boeing yesterday basically saying its max plan includes faa air worthiness representatives or inspectors checking each plane individually in the past they might designate an air worthiness representative from boeing and say you have the authority to sign off on the planes that's not going to happen now faa is going to do each of these planes individually. more than 350 are awaiting delivery they've been built they're parked either on the tarmac outside at airfields on the west coast there's no timeframe for certification. compare that with boeing's timeframe for the 737 max. it is still sticking by its
guidance it expects or is targeting a recertification of the plane in december. delivers potentially by the end of the year and potentially, depending on the airline and whether or not it's been approved and all the pilot training has taken place, some commercial service could start by the end of january or late january. take a look at shares of boeing, down more than 1.5 points or 1.5% a 777-x was going through certification testing of its own. basically they were doing stress tests on the fuselage of a 777-x. the fuselage tore open this happened back in september. this will get a lot of attention. bottom line is that it may not get a lot of attention from analysts and investors because it's unlikely to slow down the production, first flight is expected early some time next year back to you.
>> thanks, phil. in case they can hear all the jingle jangle, i want to remind our viewers that santa claus is here on the floor, getting ready to ring the close ahead of macy's thanksgiving day parade. >> santa i know him >> all the celebrities that have come through here, this is big for josh you got your phone out, making a recording of it. >> i'm pretty exciting. >> ask what his stocking stuffer is. >> there you go. i know i know it's a bad, bad joke mike santoli, when you look at the dow, poised for another record close biggest drag is boeing. >> look, shoveling in this pretty wide range all year is this a lost year for the model? will it be more than that? right now it's a similar story you see it still has kind of made progress in the last couple
of months. yes, it's a drag on the dow because of the price weighting, but i don't think it changes the broader story that it's sooner than later, maybe not as soon as we like that it gets recertified. softbank after a string of bad losses. >> it's some of the vision fund's highest profile investments have led to a $6.5 billion loss at softbank group shares have fallen nearly 20% the last six months. it may come as no surprise that softbank's biggest investors are criticizing the company, capital group, southeastern asset management are putting pressure on softbank for those bad investments and also for its plan to help raise cash for vision fund 2, which involves lending billions of dollars to softbank executives. those investors not commenting or responding to request for
comment. softbank says vision fund 2 is, quote, progressing as expected back to you. >> deirdre, thank you for that do you believe this is the end of softbank's vision fund future funds? >> you've got to be kidding me. >> a boisterous response to this. >> that's over an era has officially ended. now it's to salvage operation. you never see anything like that again. >> there you go. >> until five years from now. >> public investors trying to go up against softbank's eternal time horizon not a fan. >> 100-year time horizon what are we talking about? it's insanity. >> several record highs again. mike, what stands out for you? >> pretty healthy. nasdaq new highs and lows. a week ago i started talking about stubborn increases not the case today, over 200 new highs, very much a confirming figure month to date, growth versus
value in the s&p it's pretty much neck and neck this market is rar rewarding all kinds right now. apple, holding value. >> two minutes left to go here let's send it over to rick santelli for a check on bonds. hey, rick. >> you know, we had some solid data, whether you looked at the proxy for business spending with durable goods up 1.2%, durable goods up .6% intra-day of two-year note yields, shortest maturity. 30-year bonds, they pop. you can clearly see not as much. yield curve flattening twos, tens, tens, 30s, fives, tens finally, dollar index. chart from early october seven-week high close today. kate rogers, two days with 8600. we already popped over 8700. >> hi there, rick. that's right the nasdaq is higher by more than half of a percent right
now, best of the three major averages today in terms of performance, russell 2000 h hitting new 52-week highs today, thanks to names like jcpenney and fitbit biggest gainers in terms of percentage, auto desk, thanks to that strong earnings report that they just had, other big gainers, western digital and micron big tech names including apple, amazon and facebook are adding the most points in terms of the nasdaq today ahead of black friday, dollar tree is the biggest loser in the nasdaq 100 along with ulta and american airlines. bertha coombs, i'm going to send it over to you. >> today here, all-time highs, health care is on pace to be the biggest sector of the month. ultimately for big pharma with ameri
merck hitting an all-time high biotech on pace for the ninth straight week of gains, part of the reason they're seeing strength in small caps and there we go on the closing bell with omaop savings bank ringing the bell and macy's thanksgiving day parade happy thanksgiving, everyone. >> santa has some serious energy welcome to the closing bell. i'm wilfred frost. >> and i'm morgan brennan in for sara eisen along with mike santoli, market commentator. >> the dow only gaining slightly because of the drag of boeing. it was still positive. s&p up .4%.
>> transports were lower as for the s&p 500, 25th record close of 2019. 11th time we've seen a record close this month alone joining us to talk about the market day, josh brown from ritzholtz wealth management. thomas frost from frost & frost wealth management. mike santoli, i'll start with you. another day, another record here. >> yes it's slow momentum but it's real momentum nobody would want to stay in the way of just a seasonal effect, the fact that we have this benign backdrop in which bonds are trading and given a pass to any soft economic. you have decent economic numbers this morning from the gdp, durable goods, which kind of fits right in with what the market has been trying to get hold of, which is that we've had a trough in economic activity. it's been forever since we've
had even half a percent pullback i think that happens when essentially it's don't fight the tape and don't fight the fed type market. nobody is fighting this market. >> and that's helping bond yields as well today. >> absolutely. 1.76 or 1.77 on the ten-year that's confirming what the stock market has been trying to do. >> josh, santa rally >> i know people hate when you do this, and i'm going to commit not quite a chart crime but an index crime. if you pull out boeing and you pull out 3m and exxon, you probably have the dow 30,000 conversation it just so happens you have three of the more higher priced stocks just not having a great year this year. >> so only 10% of the index. >> but boeing is such a specific stock. so unrelated to the overall market so i think it gets an asterisk. >> thomas, where do you stand on whether there's still upside
left this year >> we think there is what a difference a year makes, right? a year ago, the fed said we'll be raising rates, a long way from neutral in the midst of a slide. things are completely different. valuations, when you look at interest rates, inflation. they're not too high we think there's some really good buys out there. we're very, very happy with where things are obviously we would like to get some of the bad news out of the way, like china. we continue to hear about china. we think there's still momentum and still gas in the tank. >> thomas, what do you think we're talking about in the last hour as well but in the russell another 52-week high here. >> yeah, morgan, great question. that's really, really good news. what's really led to rally, really, the last 11 years, has been large caps. we really needed small and mid caps to recover as well. when there's larger breadth in a
recovery, that's good for everybody. frankly, it's been hard. as we keep our clients diversified and we're not trying to chase certain sectors, it's been difficult when a client looks at their portfolio that has smaller mid cap exposure, compares it to large cap it took like 15 months for us to finally get a 12-month high on the russell 2000 this goes back to what we continue to tell our clients, that this is a healthy recovery and it's not just one sector that's doing well. >> everyone, stick around here on the panel going to bring in another guest who is finding that the s&p 500 has posted its best average performance in the month of december with the broad market returning 1.5%, 74% of the time. let's bring in chris johnson, jo johnson research group chris, this upcoming month stands out as a positive, even when we've had such good gains coming into it >> yeah, absolutely, wilf. you heard the message, kind of
that fomo market right now this is a slow burn higher there is money left on the sidelines. little concerned we could get complacent here. when you look at the seasonality alone, s&p 500 is where you want to be as you head into the end of the year. there's going to be a lot of positioning, especially from the active managers that kind of pull back on the market in october and september. you'll still find that money trickling into the market before those year-end statements print out. good time to be in the market. >> chris, any specific stocks that tend to perform well, talking about the seasonality trade versus others? >> sure, morgan. typically when you look historically, technology is one of those areas small caps as the previous guest mentioned, they get a nice kick at the year end. a lot of people looking to get into alpha generating possessions toward the end of the year right now, you have to look at the semi conductors. the risk is being pulled off or
at least the fear is being pulled back on the trade war that will be one of the sectors that takes advantage of this also health care is one of those sectors that's strong as we head into december as well. lot of posturing, especially with the political scene changing that's another one of the sectors that you really do want to focus on. >> mike, to what extent could the data that we've seen start to change the conversation from what to expect from the fed next year >> the threshold is pretty high for that right now in the 2% zone for growth, the fed is now very explicitly and very carefully focused on getting inflation higher they've changed their metric for what's going to motivate the next move. it's not kind of bad news become good news on the economy for a while, which is why the economy is reacting. it's not so much when does the fed come back in the picture but do we stretch this market high
enough with valuations high enough that the recognition that hey, guess what, we have a steady 2% economy is no longer a relief but a disappointment? i don't think we're at that level yet. >> the last time the fed had to do that is really like '04 to '06. >> right. >> the last tightening cycle is not about oh, no, the economy is too strong it's about normalization you're suggesting this would be a different narrative. >> the other wild card could be inflation picking up interestingly with the discussion we had with steve liesman earlier, china has got a little bit of evidence that inflation is picking up. in fact, the uk does as well that would be a wild card. >> to me what would happen there is not so much that the fed gets very active but the long bond yield starts to get higher because it gets nervous about inflation and that would be a pinch on valuation i don't necessarily think the fed would come and halt it
if the fed is saying we would be happy with 2.2% inflation, not 1.8, the long end of the curve will react to that. >> tom, to go back to the seasonality discussion as we get into the holiday shopping and shipping season, i mean, it's been really very marked winners and losers in terms of retail. are there places where you see opportunities? >> yeah. the opportunities that we see continue to be in the areas where -- because look, retail went -- there was an apocalypse what happened for them with amazon the big box stores had to change or die we still look for the companies that have made the adjustments, that have grabbed ahold of online shopping. we've got great stories out of best buy you've got good stories out of walmart the last few weeks target we continue -- we like the sector it's kind of hard to overlook the online part of the sector that they're projecting to be somewhere between 14 and 18
year-over-year growth. in comparison to the entire sector that's low single digits. there's going to be good opportunities there. but yeah, we've got to go to the companies. shopping has changed the idea of having our turkey and going to bed early so we can get up at 3:00 in the morning and stand in line, those days are quickly coming to an end people don't just want to shop on that one day. they want these deals to be all throughout the year. they're going to be online this weekend. so, i would -- we're cautioning our clients, let's not focus on black friday let's focus more on the season and the way the season does. but look, the consumer, they want to spend. they want to spend. >> all right thank you for joining us, josh brown, tom frost and chris johnson, and happy thanksgiving to all of you. >> thank you. >> thank you coming up, social capital
chapelath sounding off up next, vice charm of the nyse about the new proposal to change the game of going public "closing bell" is back in 90 seconds. boxed in, or held back. especially by something like your cloud. it's a problem. but the ibm cloud is different. it's open and flexible enough to manage all your apps and data securely, anywhere, across all your clouds. so it can help take on anything from rebooking flights on the fly, to restocking shelves on demand, without getting in your way. ♪ ♪
with the alternatives to the traditional ipo process the company is seeking to go public, rule change proposed in a filing of the s.e.c., first day of trading and raise capital, opening the door without funds to go public without an ipo. for more, let's bring in john tuttle, new york stock exchange. thanks for joining us. >> great to be here. >> the main difference was you didn't need to raise money or needing to raise money for a direct listing is that right? >> that's right. take a step back, a project we started a few years ago when companies started to come with us and say how can we decouple the fund-raising event from the listing event? >> and now this change would split that difference once again. >> it would. we're allowing two things. filing the proposal for rule making with the s.e.c. first, it's going to open up the direct listing option to a broader range of companies, giving them the option to pursue
that path. the second is for those companies that choose to tie a capital raise to their direct listing, they'll have that opportunity as well. >> so i realize this has been something that has been in the works for a couple of years, but how much of a tipping point have we hit this year, given the results or the performance of companies that have gone public more traditionally >> it's been a mixed bags for companies that have gone public this year. they've come out a little earlier in their life cycle and companies that have come out a little later in their growth cycle, not perform as well this is another pathway for them to go, aside from the traditional ipo. >> mechanically, a company that was interested in raising capital at the direct listing moment, how does that happen is this a big trade that happens? >> great question. it's very similar to the direct listing we have now. a lot of investors, employees, current owners of the company are selling their shares to the
public n slack, that opening trade was $1.6 billion first trade. what we're proposing now is that for a company, if they want to share sells as well on the day of listing, they would be able to join those existing shareholders in selling their stock. the only caveat being it has to be one time, one price that's the opening option on the new york stock exchange on the first day of trade. >> would they be committed to a certain size of the sale or how it's shaping up and say i would offer a certain number of shares >> minimum requirement the combination of the company's shareholders and the company's new shares being sold to the market have to be at least $350 million to ensure sufficient liquidity, buyers and sellers there in the market. with slack it was $1.6 billion in value. >> how much of this is going to phase out, compete with with
>> direct listing is for companies that decoupled the capital raise from the listing this just gives companies the option, should they choose to, to tie that primary raise. >> these conversations you're having -- certainly silicon valley is all over this, venture capitalists and tech companies are looking at this closely. other industries or sectors that want to do this as well? >> we've been getting inquiries from a whole range of sectors and companies outside the united states interested in exploring this option. >> will this allow you to cut out the investment banks >> the investment banks, contrary to what you read in a lot of the newspapers, play a very important role in the markets. they're underwriting the offering, allocating those shares, stabilizing the stock. in a direct listing, they play an equally important role as the financial adviser. investment banks played a slightly different role in spot if i and slack but still an
important role going forward. >> if there's a capital raised to a direct listing, they wouldn't be underwriting any of that therefore, a significant part of their fee raised in an ipo would go away? >> that's how it is in the traditional ipo. they receive part of the gross spread, the amount they're underwriting in a direct listing, instead of being paid that fee, they were paid what's called an advisory fee for their role as a financial adviser, since there is no underwritten offering. some sort of blend of the two is what you would expect to see. >> we're talking about basically a new way of doing a direct listing. we've also seen the special purpose acquisition companies become more popular. we showed a xwrask that had virgin galactic that came to market because of spac. >> we want more companies to be public my colleague, stacey cunningham, wrote an op-ed, talking about the social good of companies being public and investors being able to participate in the growth we're focused on finding
pathways for companies to come to the market, whether it be through spac, direct listing or traditional ipo or something new down the road. >> if traditional trade raised within the direct listing has to be $350, it still has to be a relatively good-sized company. the traditional ipo was much smaller than 350. >> right that is an aggregate of the shareholders, employees and investors participating in the direct listing. >> if there's that much value to turn over on the first trade you probably have to have a multi-billion dollar value to the company. >> that's the profile company that would be most looking for a direct listing. >> what do you put that down to, recoverable next year? >> we have a great team focused on helping companies invest
capital. look at the follow-on proceeds, how much we've helped companies raise capital this year, we're number one in the world again by a distant mile and so as we look to 2020, we expect to maintain our leadership spot. >> john tuttle, happy thanksgiving. >> thanks for having me. >> i want to come back, very quickly. >> oh, here he goes. >> ft article puts it down as 32 billion raised from 153 ipos for the nasdaq, 26 billion, 46 ipos. >> ipos and fall one offering, capital we've helped companies raise this year is well over $1 billion. >> you've said it twice. i don't have a follow-up statistic. we'll break down the stocks, what resulted in the best balanced portfolio mix in more than 20 years. the first baby yoda merchandise hitting disney's website as the holiday season
kicks off. these may t nobe the gifts fans are looking for. we'll discuss. when you shop small you help support your community - from after school programs to the arts! so become a regular, more regularly. because for every dollar you spend at a small business, an average of 67 cents stays in the community. join me and american express on small business saturday, november 30th, and see how shopping small adds up.
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the dow, because boeing lagged that index anything positive today would have been a record close for the three major averages nasdaq up .6%, russell up 0.6% not a record all-time closing high for the small caps. >> mike santoli has his third dashboard of the day. >> morgan, well-balanced menu for investors has been pretty satisfying josh brown alluded to this earlier. performance of a traditional balanced portfolio mix of 60% stocks, 40% bonds, that asset allocation, the annual total return logged by such a mix each year with a month left to go, 20% total return, including dividends, interest and price returns, that is the best number since 1998, which was in the latter part of another bull market 1997 and 1995 before that. what are the interesting things
about those three years, especially '95 and '9 was a similar setup where you had a near recession scare you had the fed cut rates three times and stop cutting rates and a recession was averted. stocks and bonds both performed very well in the wake of that. that's pretty much the formula we've had here i should point out nominal bond yields were so much higher back then that in a way it was almost more impressive right now. you have this total return when you started the year with 2.5% treasury yield as opposed to four, five or six. >> on those years of high returns for the overall portfolio, how many times have we seen both the portfolio of equities and bonds move meaningfully >> in both those years i'm mentioning, that's exactly what happened. >> in order to get a plus 20% return for the entire portfolio, all of those cases -- >> not in all of those cases back here in the '70s, nominal
bond yields were so high because inflation was so high, it was basically able to offset weaknesses in stocks i think there's sort of a before greenspan and after greenspan effect in both cases that's been going on one industry ceo says low prices are actually to blame for a shortage of key medicines. details that coming up. and original plant-based protein. we'll hear from the creator of the iconic tofurky brand and do a love taste test right here on set. we'll be right back. who says our bank isn't tech enough? everyone, look at your phones. the design thinking, the digital engineering, security, blockchain, and we will be first to market! yes. when we do we launch?
i'm part of a community of problem solvers. we make ideas grow. from an everyday solution... to one that can take on a bigger challenge. we are solving problems that improve lives. time for a cnbc news update with sue herera. >> federal district court judge ruled that former white house counsel don mcgahn is not immune from house subpoena has agreed to put her ruling on hold, allowing the government to appeal the decision, after a request from the justice
department amazon is hiring 200,000 people for the holiday season as retailers push to keep up with growing online orders and faster delivery. brutal weather is making prethanksgiving travel tough on many americans today massive storm systems are hitting the midwest, creating hazardous road conditions. minneapolis could see five to ten inches of snow before the storms clear out and finally, speaking of the holidays, parade preps are under way for the annual macy's thanksgiving day parade. the balloons will be inflated for their flight through manhattan tomorrow though it might not be quite as smooth as some people hope because the winds and strong gusts may ground the balloons. if it goes over 36 miles per hour, i think that's the threshold. keep your fingers crossed that the balloons will be able to fly. that's your news update. >> we will. >> have a great thanksgiving. >> we had a sneak preview of the
parade. >> i know. >> santa claus. >> santa claus is here. >> it's the most wonderful thing. my family loves it we sit on the couch, have a cup of coffee, watch the parade. >> only a cup of coffee, sue >> yes. >> anything a little stronger? >> no, because i'm cooking i'm cooking two turkeys tomorrow and if i start with the eggnog, no one will get any food. >> i'll have one for you. >> you go right ahead. >> happy thanksgiving. >> you, too. >> companiy drug companies have blasted for sky-high prices but also under siege for drug shortages. >> far from the only drug in that situation hundreds of medicines in shortage going back at least two decades from antibiotics to pain medications to treatments for childhood cancer and it's a widespread problem across the industry, too take a look at the companies with the most drugs facing
shortages. mylan and teva on there as well. they're often old and cheaply price yet complex to manufacture. when there's a manufacturing issue or a company drops out of the market, supply can get squeezed we asked merck's ceo about ceg in june. >> it will be a problem that will continue to be for us going forward. when the prices of drugs get too low, specifically generic drugs, you don't have the market incentive for people to put up the facilities. >> why not raise the price of the drug they said it wouldn't be the responsible thing to do. >> meg, this story is starting great reporting all day on cnbc today. i'm curious how this will factor in, or if it is factors in at all to the conversations we're
seeing in d.c., the administration or candidates around drug pricing more broadly. >> great point, morgan so much of the conversation has been around high drug prices this is often a result of drug prices being too low and not an appealing market for drug companies to get into. we've seen legislation introduced by susan collins and others focused on this issue fda has formed a task force around it. there's movement but it doesn't have the same ground swell as the outrage over high drug prices it's happening everywhere, hundreds of drugs, guys. >> meg, if we look at a drug that's not just come out and there's only one option where we're ten years past and there might be some generic options for it, how easy is it for the patient to change the drug they're on between other brand names? is that something that varies from condition or tends to be hard no matter what? >> it can vary in condition and on what your insurance is really
it's based on your formulary plan some companies may have deals saying this drug is above this drug, based on a complex rebating system we've been hearing about in the political world as well. it can be complicated to switch back and forth from one drug to another. if you want to get the branded medicine, you can ask your doctor to write "do not substitute" on your prescription slip but that can be costly, too. >> meg tirrell, thank you. happy thanksgiving as well. >> thank you. >> serving up the meat that was here before beyond meat. tofurky ceo joins us (brakes screeching) okay. so, today you're going to leave your phone with a guy named flip. (ding)
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few hours early here the plant-based meat market has grown 30% the past two years, on the backs of beyond meat and impossible foods surging in popularity long before their arrival was tofurky, that has since become a pop culture fen om na none here with us is seth tibbot. thanks for joining us today. >> great to be here. happy tofurky day. >> surely, that's tomorrow. >> okay. splitting hairs here. >> so, let's talk a little bit about tofurky. have you seendemand grow, especially as this idea of plant-based proteins continues to gain strength and gain traction in popularity >> oh, yeah. this has been a great couple of years, you know. the food market for alternative foods has been steadily growing
4%, 5% for many years. in the past 18 months, we've seen anywhere from 15 to 45% growth it's really just a lot to keep up with. >> and, seth, explain to us what the difference is between something that is tofu based and what the likes of beyond meat and impossible are doing today with what they've said are plant-based meats? >> organic tofu, traditional soy food from asia and a lot of the newer proteins are more industrialized form of soy. it's an isolated soy protein or pea protein isolate. we are more based on tofu and tempe, which are more lightly processed forms of soy. >> given the fact that beyond meat and impossible foods have soared in popularity this year, and we're seeing other competitors, other big food
companies starting to develop their own versions as well, how would you assess the competitive landscape? >> you know, we love to see the brand, all these other new brands it's really the tide that floats all boats kind of fen om phenomn we want to see all of these companies succeed because a, it's in our mission to see plant-based foods survive and become the new paradigm, which they're well on their way to it's also a business reason, which is it's easier for us to place our products in supermarkets we're in 27,000 stores worldwide. right now the sun never sets on the tofurky empire we're in the uk, australia, and all over the world, including antarctica, by the way it's great to see noise in the category is see the category very healthy. >> antarctica, okay. in terms of the placement in the grocery stores, certainly we've
seen those other brands getting placed in the meat sections. tofurky is typically in the produce section of the store would you be looking to move that now >> possibly but it would take a whole new packaging lineup for us we're really happy with the produce section. we know a lot of our flexetarian and vegetarian shoppers go to the produce section any how. sometimes we're in the natural set. not so much in the meat section. >> is thanksgiving itself, given the headline name of the product, is this a huge day for you, relative to sales of the product across the rest of the year >> yeah. this is a great day for us tofurky deli slices, sausage, chicken, we have 37 turkey products we just launched, actually, a new brand called mucho that has cheesecakes, frozen pockets. so in the early '90s, this was
the day that made or break the company, and that was like 45, 50% of our sales were during the holiday season but right now, it's more like 10 to 15%, because we're so busy all year round, trying to meet this demand, that it's a great day every day. >> seth, you mentioned, obviously there's a virtue of being a pioneer in this area and you mentioned maybe it's easier to get shelf space given the popularity of plant-based foods here is there also a challenge of appealing to a younger consumer right now who maybe has known about tofurky but is interested in things that seem more up-to-date >> yeah. you know, that is a great point and it's always a struggle to keep your brand relevant and young and sexy, as it were but, you know, millennials now are going crazy for all plant-based foods and so many of
them have been raised on tofurky. they know the name and the brand. and they heat it all the time, particularly the deli slices and sausages we have we get comments all the time from the millennials who i think are one of the strongest demographics for all plant-based foods right now. >> seth, thanks for joining us. >> yeah. great to be here happy tofurky day. we have a nice book coming out that details the plant-based movement it's called "in search of the wild tofurky." it tells all my failures of losing money for 15 years and voila, coming to the fabulous wild tofurky. >> there you go. we look forward to the release of the book. maybe you'll come back then. seth, thanks so much. >> yep thank you. >> we also have some on set. >> meantime, we do we're going to sample it. >> just for the viewers, it
comes with stuffing. i think the brussel sprouts are separate that the team have pulled together. >> yeah. okay. >> not looking forward to this that much, i have to say i'm going to do it, because i have agreed i will. >> it's okay. >> this is like a taste of my youth. >> oh, yeah? >> i had a long stretch going vegetarian on and off. i'm very familiar with the tofurky products. >> maybe some gravy. >> gravy would help. different experience. >> what do you think >> it's not great, i'm afraid. i'm trying to be honest. i don't want to lie. but it's not -- there we go. thank you. >> all right i'm going to keep eating over here. >> the toe-to-toe battle that
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valuable start-up is attempting to separate tik tok. based in china before and has come under increased scrutiny and committee on foreign investme investment tik tok's huge growth, we spoke to an executive yesterday and asked about this very issue. >> data protection is very important for us at tik tok. it's a global company here in the u.s. we operate out of l.a. we don't remove comment based on sensitivities around china or other governments. what we're really focused on is building a platform where people can express themselves freely, be creative, joyful. that's the main direction which has led to the growth of tiktok. >> hisanswer yesterday pretty clear, abides by local rules,
domestic rules and restrictions. i guess for them, an investigation if it happens will reveal the facts and that's what we should wait for they're in this perfect storm of issues at the moment, which makes people worry about chinese companies or domestic issues with facebook and data privileges being abused. >> and human rights violations and political issues over there. >> it speaks to how important data is and on a national security level, army secretary ryan mccarthy came on the network because the army had received letters from lawmakers because there had been some recruiting happening, using the tiktok app you want to go where gen-z is to get that message and enlist people they've put that on hold they're now looking at vulnerabilities, investigating and sort of thinking about the use of tiktok and this use of
technology we saw a crackdown where the grinder acquisition was concerned, too tiktok is in focus right now this idea of data as a national security issue will continue to grow. >> sure. it was a fun interview yesterday. check out cnbc.com for the full exchange. mike santoli heads back to the telestrator with a look at one big bright spot. >> disney's baby yoda bomb, debuts its clothing line and it's not going down as well as they had hoped
sanltly for the final dash board of the day. >> pretty much all about going home this holiday. but homes have been very much in the part of the economic story this year. i mean it's pretty well acknowledged that new home sales and existing home sales have been a god engine of the economy. this is a good apples to apples number on the pacing of new home sales over the course of each year s in 2009 right here you see no real falloff through the seasonal period which typically has a decline. these are the throe prior years. this is the new home sales not
the huge engine of the overall housing market but obviously the trends are good and the market nick to do out. the home building etf, the compared to adjacent parts of the market and, homes a autos used to be influenced by similar dynamics, full employment, financing ability. and that's in green, the car etf struggled overall consumer discretionary of which home builders are a part has done fine but pretty much up and away for builders themselves. obviously a net addition to economic growth to next year but you wonder if the market is getting too comfortable with the idea that it can't mips. >> we saw weaker than expected housing data point today and diana olick has been flagging this and reporting on it, the idea of the growing home shortage. >> yes. >> right now in the country. and so i wonder whether that is something that's ultimately going to weigh on some of the charts that you show us. >> it's definitely suppressing
existing home sales because of what you would expect versus the shortage guess what tries to meet the shortage, the land availability. and they can't make a dent in it just the publicly traded builders the numbers and capacity are not there. >> thanks very much. still to come what do tesla, manchester city and baby yoda all have in common they have wall street buzzing today and we break down the buzz when we come back. ♪ oh, ho! oh, ho, ho, ho! you... you got me. uh, what do you want? i've got uh, ai robots, i've got vr goggles.
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wedge back it's time for the buzz on wall street the stories have have everyone talking today. at least us. first the update to the story we brought you yesterday. it's the toe to toe battle, get it that never will be. ford now say going has nothing to prove to tesla and proposed f-150 cyber truck tow battle musk says bring it on but meant to be tongue in cheek. >> weak. >> now, lego trolling tesla's cybertruck too the company tweeting this. writing the evolution of the truck is here popular guaranteed shatter proof. >> i like that. >> that's classic. >> respect. >> lego slamming tesla over the armor glass shattering earlier
this week. and guys, i maintain i mean musk come out and said 250,000 preorders and certainly we know that's 100 down and refundable, et cetera. but more than anything all of in just feels like one big marketing pile on. >> well, either way, musk stepped up and challenged ford backing down that's pathetic i don't know how you do it fairly. >> he is that the issue, right. >> yeah, yeah. >> taking the risk of actually. >> i think that's weak private equity firm silver lake bought a $500 million stake in the owner of manchester city, making the english soccer team or ownership company one of the world's most expensive sforts franchising. silver lake taking a 10% stake in the english premier league team valuing the manafort city group at 14.8 billion. they have other teams around the world but by far manchester city the biggest. city revenue last year $600 million
they are not public. the other teams throw in less than 100 million on top of that. six times spaels is the multiple they paid for the purchase and investment compare that to others manchester united, which is the city on the stock exchange 2.7 billion-dollar market cap. three times sale uventas about the 19 billion market cap about 450 sales six times sales silver lake put into this is extraordinarily hi. >> yes. >> you add on top of that the middle eastern backers in the past have widely been around it's not public numbers that they just pour the cash in not only is the multiple on revenues expensive but it's almost certain that therapy not profitable. >> leveraged heavily. >> it's oh obviously an asset play you think it's scarcity value. it's like teams in this country on operating basis it it makes no sense to pay up the asking prices but if you believe the league is getting more popular, media riepts are god you can sell it down the road. but as a business it's hard to
justify. >> yeah, i mean it also just speaks to the sky rocketing values in soccer you can talk about the name ekt with player values a couple years ago. this is creating it's own effect as well. just noting msg shares finished up because there is some analysis out this comparing it to msj. >> thes nirks and rangers owned by msg. >> expensive purchase and i hope manchester city does better. >> in the meantime disney is dropping the first official baby yoda merchandise and fans say it feels like forced many twitter users says ing the merch looks boot legged or made on cafe price. disney wasn't expecting in level of demand for products featuring baby yoda. >> amazing because disney does things well doesn't disappoint. >> no dolls for the kids
it's t-shirts for $25. >> accuses them of only being interested in the merchandising angle. maybe it's charging they weren't ready. it's organic. >> or short tithe zplood like tofurky. >> that does it for "closing bell." >> you can catch us back here on friday at 12 noon eastern for shortened trading day. happy thanksgiving "fast money" begins right now. >> live from the nasdaq market site over looking new york city's time square this is "fast money. i'm melissa lee. traders on the desk are steve grasso brian kelly guy adami tonight on fast, the rush is on. millions of americans taking to the skies as we kick-off the busiest travel week of year. by the sunday could send the airlines sarg. break out the textbooks because class in session warden professor jeremy siegel says dow 30,000 is on the which. he kbifs us the time table feast or fast,